Families to Get $750 to $1,500 Cash Boost in the Mail in Colorado TABOR Refund

A cash boost in the amount of $750 for single taxpayers and $1,500 for joint taxpayers have been disbursed in the mail for families in Colorado. The money due is underscored in the Taxpayer's Bill of Rights (TABOR) refund.

Dubbed the Colorado Cash Back, the stimulus payment was expedited for release this year instead of spring 2023. According to the Colorado Department of Revenue, taxpayers who completed their 2021 income tax filing as of June 30, 2022, should expect the refund check in the mail on or before Sept. 30, 2022.

Colorado State Treasurer Dave Young said that they have started transmitting as of Monday, Aug. 1, 2022. However, residents should expect the distribution to last several weeks as an estimated 3.1 million locals filed their taxes for the year.

Taxpayers who have yet to complete their income tax returns before the extended deadline in October will still be eligible for the Colorado Cash Back. However, they will get their TABOR refund by January 2023 due to late filing.

On the other hand, families who just moved to Colorado for 2022 will not be eligible for the stimulus payment.

Read Also: New Stimulus Checks Approved: Up to $1,050 to Go to Eligible Californians 

What exactly is a TABOR refund?

The state disburses the TABOR refund, spun as the Colorado Cash Back, when the tax collection for the year is beyond the constitutional cap. The state is obligated to return the excess money to the people if the numbers indicate good growth in the Colorado economy.

Legislators, however, still need to specify the details of the rollout as this is not outlined in the state constitution. For the current rollout, the lawmakers have agreed that a one-time $750 to $1,500 cash boost would be the way to go. They have also decided to release the money over the summer to help with the school expenses.

Young told The Denver Channel that what differs from this year's Colorado Cash Back to the previous years is its early release and higher value for low-income families. In the past, the amount of the cash boost was based on a percentage so high-income earners get more of the TABOR refund.

This year, every Colorado taxpayer will receive the same amount. However, the state's Department of Revenue may deduct back taxes or any debt the taxpayer owes to the government.

"Those people that are in most need, I believe, are getting the best benefit out of this," Young said.

Preventing fraud for the cashback

The state will use the U.S. Postal Service (USPS) for the distribution and not through direct deposits. Taxpayers are advised to update their postal address if they have moved residence, or they must set up a forwarding address to ensure that the check arrives in their new home.

Meanwhile, locals who pay property or sales taxes, instead of income taxes, may also claim their TABOR payments. Aside from the checks, they may be eligible for property tax reductions if they are senior citizens or veterans.

A call center will soon be set up to help the locals with their TABOR refund questions, per KDVR. 

Related Article: Stimulus Payments: Residents in These 4 States May Get Another Cash Boost